Residential and warehousing sectors major investment movers in Q3 2021: Colliers
In Q3 2021, foreign and domestic investors invested in residential projects in cities like NCR, Mumbai, Hyderabad and Chennai, mentioned a report by Colliers. During Jan-September 2021, industrial and warehousing assets attracted solid investments of about $900 million from investors, it said.
Leasing in warehouses in anticipation of the ongoing festive season and the continued demand from e-commerce companies, are making warehousing assets attractive to investors.Land acquisitions of about 35-50 acres occurred primarily on the outskirts of Tier 2 cities, such as Pune, Indore, Kochi, Hyderabad and Kolkata, mentioned the report.
“The third quarter has evinced significant Investor interest, buoyed by ample liquidity and with the easing of travel restrictions has driven significant activity in property markets across Asia Pacific. In India, residential sector has performed very well with record sales across markets helping developers to deleverage and acquire new opportunities. The real estate sector has seen the resolution of distressed situations and investors across capital stack be it Special Situations, Income Generating sustainable assets, Private Credit are finding Indian opportunity attractive for the long term”, said Piyush Gupta, Managing Director, Capital Markets and Investments Services, Colliers India.
During the quarter, large, listed developers focused on lowering debt and expanding their portfolios while launching new projects and acquiring distressed assets.
According tot he report, the residential sector has already seen an uptick in housing sales led by pent-up demand from the last few months, and other factors in Q3 too. To propel demand during the festive season, banks have reduced home loan rates. This will spur demand across several segments. Meanwhile, significant demand for affordable housing and growing investments in new projects should increase supply in Tier 1 markets like the Mumbai Metropolitan Region, National Capital Region and Bengaluru.